House #32 – We own it!

After many delays, we finally closed escrow for House #32.  It is a great house, but it sure doesn’t have a lot of curb appeal.  This house has a weird front entrance, bad colors and ugly roof line, but that’s how you make money right!

This house was built in 1978 and is a solid neigbhorhood and just over 1,500 sq feet.  It currently is a 3 bedroom 2 bathroom, but we are going to turn it into a 4 bedroom 2 bathroom.

We debated for a little while about putting this house into our rental pool, but flipping it won.  As you can probably tell if you follow the blog we have been keeping about 50% of the properties we have been purchasing so we need to make sure we get some rehab checks coming in.

The kitchen is going to get gutted.

Green carpet?

Because our crews are looking for work, we are probably going to have this house done in three weeks.  Most likely it is going to end up going FHA, so we are going to need to wait 90 days.

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5 Responses to “ House #32 – We own it! ”

  1. BJ Fitzgerald says:

    I thought the FHA 90 days rule was suspended?

  2. Steve says:

    Yes, they did suspend it. But only for sales less than 20% of the purchase price. Unfortunately, none of our properties fit that criteria.

  3. Tom Tarrant says:

    You might want to take a look at this. You can sell for way more than 20% increase on purchase price, just have to show receipts and justify price increase. FHA is now flipper friendly!

    http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

  4. Steve says:

    Hi Tom, thanks for posting that, I saw it and posted about it earlier. I wonder how stringent and carefully they run the numbers, or if it is more just to eliminate fraudulent transactions.

  5. I am not sure how stringent they actually are since the ruling is so new, but the requirements are you to give them proof of the upgrades to justify the increase and an independent inspection.

    Keep us posted

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